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Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountDepreciation, Provisions and Reserves1 Mark
MCQ
Depletion method is normally applied in case of _________ assets.
  • A
    Intangible
  • B
    Tangible
  • ✓
    Wasting
  • D
    Current
✓

Answer

Correct option: C.
Wasting
Wasting Assets are the assets that have a limited life and thus decreases in value (depreciates) over time.
The term depletion is used in the context of extraction of natural resources like mines, quarries, etc. that reduce the availability of the quantity of the material or asset.
Hence Depletion method of depreciation is normally applied in case of wasting assets.

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